So how is everybody else in business

Discussion in 'Business Operations' started by Hodge, Sep 26, 2002.

  1. lasher66

    lasher66 LawnSite Senior Member
    Posts: 395

    If I am a sole proprietor, wont liability insurance pretty much keep me safe from loosing my assets?

    Lasher
     
  2. Hodge

    Hodge LawnSite Senior Member
    Posts: 261

    Jim,

    Excellent post.. this was the way I was leaning and the copy of your email confirmed it. BTW great web site.

    But appx 27.50 per yard for 115.00 permonth how large are your properties?
     
  3. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    Im pretty sure you also need a vendors liscense so you are able to collect and report sales taxes. If you have employees, you need a few other forms to be filled out. I looked at this crap the other day, it almost made my day to see all the paperwork:mad:

    To answer the ?, im a sole prop but am leaning to LLC as the co grows.
     
  4. Hodge

    Hodge LawnSite Senior Member
    Posts: 261

    was just on another BBS for business law and found it is best to LLC in Nevada due to the limits on the tax rate has anybody tried this?
     
  5. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,835

    1000-3000 sq. ft. on average. Takes two guys about 15-30 minutes each yard. Two guys do 20 or so per day.
     
  6. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    MacLawnCo wrote:

    Im pretty sure you also need a vendors liscense so you are able to collect and report sales taxes.

    That would all depend on whether or not Kentucky (the state he's from) collects sales taxes on services. My state does not.
     
  7. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Spent an hour and a half with my attorney last winter. Went from sole proprietor to LLC.

    Cost about $1000 in the long run, but was well worth it I think.
     
  8. MPhillips

    MPhillips LawnSite Member
    from zone 7
    Posts: 94

    went LLC, like everyone else said it appears to combine the tax, and liability shields of the old corp. structures, with the flexibility of the sole proprieterships.
     
  9. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,835

    I should add also that all of our accounts are year-round. So we get paid the same $125 or so each month from every account, all throughout the winter, even though we are not mowing weekly.

    (Sorry for the off-topic post.)
     
  10. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    http://www.bizfilings.com/intuitadvisor/learning/comparison.htm

    S Corporations and LLCs are taxed as if they were partnerships - no tax is due on the entity level. Each partnership engaged in a trade or business must file a return on Form 1065 showing its income, deductions, and other required information. The return shows the names and addresses of each partner and each partner's distributive share of taxable income and deductions.

    S Corp. is a tax designation only it has nothing to do with the actual incorporation of the business.

    Tax liability for an LLC varies by state. LLC’s have a “limited duration” or amount of time that they exist …many family’s create a “trust fund” for the family using the LLC.

    Ownership transferability is not as easy (can’t sell stock) as an S Corp when getting ready to retire, sell or pass on to someone else the transfer is a simple stock purchase.

    Both S and C corporations require more ongoing paperwork than an LLC. They must file articles of incorporation, hold directors' and shareholders' meetings, keep corporate minutes and hold shareholder votes on major corporate decisions.

    We are an S Corp in the State of Florida as the LLC is relatively new and some questions of liability protection have not been tested in court.

    In the long run .... Ideally one does not want to create a huge profit for company taxation ...as almost all expenses are a tax right off of some sort ....but this is getting into an area for a professional CPA
     

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